Charting Stocks

Hmmm. Could this be inflationary??

In our 2009 forecast, we mentioned that the Dow Jones/Gold ratio would likely hit 5 this year. A milestone was reached today as the Dow Jones index made a fresh 20 year low in terms of gold. The ratio has fallen to 7, down from the 1999 peak of 42.5 ounces.
Seven 1 oz. gold eagle [...]

Helicopter Ben has been busy lately.

Source: Mises.org

In his long awaited annual letter to shareholders, Warren Buffet reflected on the economic crisis, the coming inflationary pressures,  and his own personal mistakes. “During 2008 I did some dumb things in investments. I made at least one major mistake of commission and several lesser ones that also hurt,” he explains.
Speaking of the government response [...]

2009 will be a year of complete destruction for the US economy. 5 Million will lose their jobs. The Dow Jones Industrial average will break below 6,000. Municipalities will fail. Insurers will fail. The unemployed and foreclosed American population will take to the streets and begin rioting. The Greatest Depression is upon us.
Sound far fetched? [...]

“This is a man (Ben Bernanke) who knows nothing about markets..Who knows nothing about economics”

I noticed a couple of comments (OK just one) regarding inflation/deflation and how to know which is dominant. To get the answer I like to use a simple inflation/deflation indicator that I first learned about by reading John Murphy’s Intermarket Analysis book. I highly recommend reading this book to anyone who’s interested in charting stocks [...]

At $8.5 Trillion already pledged by the US Government, the 2008 bailout of the financial sector has become largest single expenditure ever assumed by the US Government (Or any government). Just how large you ask? We’ve now exceeded the total cost of World War 2, The New Deal, Korean War, Iraq Invasion, Vietnam, The Louisiana [...]

Kondratieff
Nikolai Kondratieff was a Russian Professor who, after the Russian revolution of 1917, was tasked with developing the “Five year plan” which researched and analyzed factors regarding economic growth for the Soviet’s. Kondratieff published his work in 1926 and because his findings seemed critical of the stated policies of Joseph Stalin, Professor Kondratieff was removed [...]